Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups
分析印度多元化商业集团附属公司相对于独立公司的绩效，发现集团多元化程度与绩效呈U型关系，高度多元化集团的附属公司表现优于独立公司。
Emerging markets like India have poorly functioning institutions, leading to severe agency and information problems. Business groups in these markets have the potential both to offer benefits to member firms, and to destroy value. We analyze the performance of affiliates of diversified Indian business groups relative to unaffiliated firms. We find that accounting and stock market measures of firm performance initially decline with group diversification and subsequently increase once group diversification exceeds a certain level. Unlike U.S. conglomerates' lines of business, and similar to the affiliates of U.S. LBO associations, affiliates of the most diversified business groups outperform unaffiliated firms.